What are the impacts of the …

The Great Depression of 1929 affected the farmers and the middle class in India in the following ways:

1. In the 19th century, India had become an exporter of agricultural goods and importer of manufactured goods. The depression affected Indian trade, India’s exports and imports were halved between 1928 and 1934. As the international prices crashed, wheat prices in India fell by 50 percent.
2. Agricultural prices began to fall and finally collapsed in 1930. This further decreased the demand for agricultural goods.
3. It became difficult for the peasants to sell their harvest and pay revenues. Indebtedness increased.
4. Because of falling prices, those who had fixed incomes, in urban areas like people who received rents, middle-class salaried employes, became better off. Everything costs less. Industrial investments also grew as the government extended tariff protection.